The new year may bring good news for central employees and pensioners.
Digital Desk, New Delhi. The new year is bringing big changes in your bank account, salary, taxes and daily expenses. Many rules have come into effect from the morning of January 1, 2026, which will affect the lives of millions of people. Someone is expecting an increase in salary, while someone may suffer a big loss due to a small mistake. If you do not prepare on time, tax filing may get stopped, refund may get stuck or you may not get the benefits of government schemes. Let us know what is going to change in the new year and what should you do?
These changes will affect the lives of employees, pensioners, farmers, loan takers and common people. There may be relief in some rules, while the strictness in some will increase. The most important thing is to complete some important tasks by December 31, 2025, otherwise the new year will bring difficulties.
Problems will increase if PAN and Aadhaar are not linked.
The biggest warning is for those who have not yet linked their PAN card with Aadhaar. The government has made it clear that 31 December 2025 is the last date. If you do not do the linking by this date, your PAN will become inoperative from January 1, 2026. This means that you will not be able to file income tax returns, tax refunds will get stuck, banking operations may stop and you will also not get the benefits of government schemes.
But if you get linked later, a fine of Rs 1000 may also be imposed. This rule is especially applicable to those people who had made PAN from Aadhaar Enrollment ID. If your PAN is already linked, don't worry, but check the status. Linking and status can be easily checked on the Income Tax website.
Prices of LPG cylinder and petrol-diesel
Like every month, new rates of domestic and commercial LPG will come on January 1. A reduction of Rs 30-40 is expected due to lower crude oil prices. This will bring relief to the kitchen budget. The prices of petrol, diesel and air fuel will also be revised, which can make tickets cheaper.
Credit score will now update faster
There is good news for loan or credit card users. Currently the credit score is updated once a month, but in 2026 it will start updating every week. If you pay EMIs on time, the benefits will be visible sooner and loan approval will be easier.
However, even a day's delay will have an immediate impact on the score, which can increase the loan interest rate. This change will come from the new rules of RBI and will increase transparency. People having good score can get cheaper loan.
Salary-pension may increase due to 8th Pay Commission
The new year may bring good news for central employees and pensioners. The period of 7th Pay Commission is ending on 31st December 2025 and 8th Pay Commission is considered to be effective from 1st January 2026. The government has approved the commission and it is expected to benefit about 50 lakh employees and 69 lakh pensioners.
However, it may take up to 18 months for the commission's recommendations to come. Therefore, it cannot be said when the increased salary will be available, but experts believe that the salary of government employees will be increased from January 1, 2026 itself, that is, if the recommendations are implemented even later, then the arrears will be available from January 1, 2026 only.
It is expected that the fitment factor may be from 2.15 to 3.0, due to which it is possible to increase the basic salary by 20 to 35 percent. Along with this, DA, HRA and pension will also increase.
New income tax rules and forms
Changes are also going to come for the people paying taxes in the new year. A new income tax form is expected to come from January 2026, in which more details of bank transactions and expenses will be asked. This will make tax filing easier, but will reduce the scope for error. If your income and expenses don't match, there may be questions.
Apart from this, the new law may come into force from April 2026 in place of the old Income Tax Act 1961. Its purpose is to simplify the tax system and reduce court cases. The month of December is important for tax planning. There will be more pre-filled data in the new form, hence it will be necessary to provide correct information.
Changes possible in bank rates and FD
Big banks like SBI, HDFC and PNB may take new decisions on interest rates in January. FD rates and loan interest rates may change. If you are planning an investment or loan, then wait for January, because the rates may be lower.
Farmer ID is necessary for farmers
There is an alert for farmers taking benefits from PM Kisan Samman Nidhi Yojana. Farmer ID is becoming mandatory in many states like Uttar Pradesh, Bihar and Madhya Pradesh from January 2026. This ID will be linked to the land records and will contain complete digital information of the farmer.
Without ID, the annual installment of Rs 6000 may get stuck. This is already necessary for new applicants, but old beneficiaries should also get it done quickly. Relief may be available where the system is not fully implemented. If you belong to a farmer family, check local office or online and get an ID made.